India's Forex Reserves Surge to Record High of USD 689.235 Billion

India's foreign exchange reserves surged by USD 5.248 billion to a record high of USD 689.235 billion. This growth helps insulate the domestic economy from global shocks, with the largest increase seen in foreign currency assets. India's gold reserves also saw a minor increase.

India's foreign exchange reserves saw an impressive surge of USD 5.248 billion, setting a new record high of USD 689.235 billion for the week ending on September 6, as revealed by the Reserve Bank of India (RBI). This surpasses the previous record of USD 683.987 billion.

The reserves have been on a steady incline, adding over USD 65 billion in 2024 alone. The substantial buffer of forex reserves shields the domestic economy from global uncertainties. RBI's latest data indicates that foreign currency assets (FCA), the largest segment of these reserves, climbed by USD 5.107 billion to reach USD 604.144 billion.

Additionally, India's gold reserves grew by USD 129 million, totaling USD 61.988 billion. Projections show that these reserves can cover about a year's worth of imports. Throughout 2023, India augmented its forex reserves by approximately USD 58 billion, contrasting the USD 71 billion decline witnessed in 2022. FX reserves are primarily held in major currencies like the US Dollar, Euro, Yen, and Pound Sterling.

The RBI remains vigilant over the foreign exchange markets, stepping in to ensure market stability and curb excessive volatility, without aiming for any specific rate target. Interventions, such as dollar sales, are employed to prevent the rupee from steep depreciation. (ANI)

(With inputs from agencies.)